China Manufacturing – More Devaluation?

The Chinese manufacturing is in the doldrums – tenth consecutive month of bad news.

 

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It does not look good.

Everyone must be questioning – when global trade will stop sinking.

I can answer that – when Countries tackle the high level of debt.

The question is though – will China start the annual currency wars in an attempt to arrest the continued decline?

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One must recognize that the immediate tool of all Central Banks is to manipulate their currencies.

What goes up – should go down.

If the Yuan was floated I know how low it would go.

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So – I expect China to devalue.

Then we watch Vietnam, Korea and Japan.

 

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